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Deutsche Börse Expands Indices for Leveraged Investments in DAX


New LevDAX x4 tracks daily performance of the DAX index fourfold/ Indices allow leveraged short investments

Deutsche Börse has expanded its offering in the area of DAXplus strategy indices with two new ShortDAX indices and a new LevDAX index. LevDAX and ShortDAX give investors the option of leveraged investment in the DAX index when prices rise or fall. In addition to the LevDAX and ShortDAX Deutsche Börse is also introducing further, more highly leveraged variations.

The new LevDAX x4 allows investors to profit from four times the daily performance of the DAX index. The existing LevDAX is linked to the movements of the DAX benchmark index with a leverage factor of two. Under the expansion of the index family, the LevDAX will therefore be given the name LevDAX x2. Any movement on the DAX results in double the movement on the LevDAX x2 and four times the movement on the LevDAX x4; in the case of both rising and falling prices.

Deutsche Börse has launched two new indices for investments in falling prices to enhance the ShortDAX: ShortDAX x2 and ShortDAX x4. Just as with the LevDAX, the x in the name stands for the leverage: ShortDAX x2 means double the negative daily performance of the DAX; ShortDAX x4 has a leverage effect of four times the negative daily performance of the DAX. The performance of the ShortDAX is directly opposed to that of the DAX® index, i.e. if the DAX rises by 5 percent, the ShortDAX falls by 5 percent, and vice versa. The ShortDAX gives investors who expect negative performance on the DAX index or are looking for a short-term, efficient hedge against falling prices access to a useful strategic index product.

All leveraged indices have a protective mechanism in order to prevent a total loss. If an index loses more than 50 percent at a certain time on any one day, the leverage effect will be adjusted ad-hoc and the calculation continued based on the last DAX level prior to the defined point in time. Deutsche Börse’s new strategy indices provide a simple method of above-average participation in market movements.

Market Data & Analytics calculates and publishes more than 2,600 indices in total. Deutsche Börse thus ranks among the world’s major index providers. Market Data & Analytics also compiles, distributes, and markets independent capital market information, such as price data, trading statistics, and back office information for banks and financial institutions. With its innovative range of products, Market Data & Analytics stands for maximum transparency, reliability, precision and integrity.

DAX®, DAXplus®, LevDAX® and ShortDAX® are registered trademarks of Deutsche Börse AG.


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